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IBM511C-INTRODUCTION TO BUSINESS MANAGEMENT-1ST OPP-NOV 2024 |
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nAmlBIA
UnlVERSITY
OF SCIEnCE Ano
TECHnOLOGY
HAROLDPUPKEWITZ
GraduateSchoolof Business
FACULTY OF COMMERCE; HUMAN SCIENCESAND EDUCATION
HAROLD PUPKEWITZ GRADUATE SCHOOL OF BUSINESS
QUALIFICATION: DIPLOMA IN BUSINESSPROCESSMANAGEMENT
QUALIFICATION CODE: 06DBPM
LEVEL: 6
COURSE CODE: IBMSllC
COURSE NAME: INTRODUCTIONTO BUSINESS
MANAGEMENT
SESSION: NOVEMBER 2024
DURATION: 3 HOURS
PAPER: PAPER1
MARKS: 100
FIRST OPPORTUNITY EXAMINATION - QUESTION PAPER
EXAMINER(S)
MODERATOR:
Ms. 0. Kangandjo
Ms. J. Hambabi
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
PERMISSIBLE MATERIALS
1. Examination paper
2. Examination script
3. Calculator
THIS QUESTION PAPER MEMO CONSISTS OF 8 PAGES {INCLUDINGTHIS FRONTPAGE}
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Question 1
SECTION A
[2x20 = 40 Marks]
Indicate your answers next to each corresponding number in the examination booklet. For example:
1.1 C
1.1
a.
b.
c.
d.
Which of the following statements is not true for a business with a legal personality?
The business is dependent on its members.
The business is recognised as a legal subject alongside natural persons or individuals.
The business has its own rights, assets and obligations.
The business's existence is not affected by changes in its membership
1.2 XYZ Company wants to introduce a new product. They conduct surveys, focus groups, and
analyze sales data to understand what customers want. What process is XYZ Company
engaging in?
a. Market Research
b. Public Relations
c. Product Placement
d. Price Analysis
1.3
a.
b.
c.
d.
Management perform which of the following activities?
selling
directing the activities of employees
stock merchandise
ordering merchandise
1.4 Which management function involves setting objectives and deciding how to achieve them?
a. Organizing
b. Planning
c. Controlling
d. Leading
1.5
a.
b.
c.
d.
According to Maslow's Hierarchy of Needs, which need is at the top of the pyramid?
Esteem needs
Self-actualization
Social needs
Safety needs
1.6
a.
b.
c.
d.
Which ofthe following is an example of innovation?
Opening a new branch of an existing store
Developing a new product that meets a unique need
Hiring new employees for existing roles
Reducing the prices of products
1.7 John owns a farm where he grows crops. He uses a tractor, employs workers, and finances his
operations with a loan from a bank. In this scenario, what does the tractor represent?
a. Labor
b. Capital
c. Land
d. Entrepreneurship
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1.8
a.
b.
c.
d.
Which of the following
buyers
substitute products
intermediaries
suppliers
is not considered as one of the forces of Michael Porter?
1.9
a.
b.
c.
d.
Which of the following will you consider a novelty for entrepreneurship?
the government can easily provide you capital
your chances of becoming rich has been paved
creating jobs for yourself and your country
all of the above
1.10
a.
b.
c.
d.
Which of the following are not elements of Maslow's Hierarchy of needs?
esteem needs
self-actualisation needs
psychological needs
social needs
1.11 What is the primary role of management in an organisation?
a. To minimize profits
b. To maximize customer complaints
c. To achieve organisational goals
d. To create competition with other organisations
1.12 Which type of a business organisation is owned by shareholders?
a. Sole proprietorship
b. Partnership
C. Company
d. Franchise
1.13 Which of the following is an advantage of a sole proprietorship?
a. Unlimited liability
b. Limited access to funding
C. Complete control by the owner
d. Double taxation
1.14
a.
b.
C.
d.
Which of the following
Labor
Capital
Technology
Land
is NOT considered a factor of production?
1.15 A company selling luxury watches decides to target high-income individuals who value status
and quality. What type of market segmentation are they using?
a. Geographic
b. Behavioral
c. Demographic
d. Psychographic
1.16 Which leadership style is characterized by leaders who delegate authority and allow
employees to make decisions?
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a. Autocratic
b. Transactional
c. Laissez-faire
d. Bureaucratic
1.17
a.
b.
c.
d.
XYZCorporation uses annual reviews to assesshow well each employee is performing. Based
on the review, employees may receive training to improve their skills. What HR function is
XYZCorporation using?
Recruitment
Training and Development
Performance Appraisal
Compensation
1.18
1.
2.
3.
4.
a.
b.
C.
d.
An enterprise is considered a legal/juristic personality when the:
members are liable for the debts and obligations of the juristic person.
enterprise has its own rights, assets and obligations.
members enjoy limited liability as they stand to lose only the capital they have contributed.
enterprise's existence is not threatened by changes in its membership.
1,2,3
1,4
2,3,4
1,2,3,4
1.19 The cost that vary with the level of production is
a.
Semi Variable costs
b.
Semi fixed costs
c.
Direct costs
d.
Variable costs.
1.20 Which of the following is NOT a function of management?
a. Planning
b. Staffing
c. Controlling
d. Investing
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Question 2
[26 Marks]
Indicate whether the following statements are True or False in the examination booklet provided.
No.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
Question
The profit of a close corporation is not taxed in the hands of its
members.
Abraham Maslow identified five basic human needs as the prime
driving force for needs satisfaction and thus human behaviour.
In free market economic systems decisions as to the allocation
of resources are taken by individual producers and consumers.
The profit of a close corporation is taxable in the hands of its
members.
A sole trader has limited liability and of course legal personality.
A franchisee has independence to operate his/her store.
Quantitative guidelines for defining SMME's include a simple
organisational structure that is independent, privately owned
and managed.
Management by objectives is a goals setting technique and
employees could establish performance targets.
The legal-political environment is influenced by the variables in
the micro environment.
Through organising, management allocate resources and
activities to different functional components in the
organisations.
TOTAL lOmarks
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SECTIONB
Question 3
3.1 Define the following the concepts.
[36 Marks]
a) Entrepreneurship
(2)
b) Franchise
(2)
c) Business environment
(2)
d) Planning
(2)
e) Marketing
(2)
3.2 John is a budding entrepreneur in Windhoek, Namibia. He's interested in starting his own
business but is unsure about managing all aspects of a new startup. After some research, he
decided to purchase a franchise for a popular fast-food chain that has been successful in
South Africa and is expanding into Namibia. Why would you encourage John to go ahead
with his decision to buy into a franchise system?
(6)
3.3 Maria and Jacob are two friends from Namibia who want to start a business selling eco-
friendly products. They have saved up enough capital and are excited to begin. However,
they are unsure which form of legal ownership would be best for their business. Advise
Maria and Jacob about any five factors they must consider when choosing a form of legal
ownership.
(5)
3.4 Porter's Five Forces Framework is an essential tool for understanding the competitive
environment of an industry. By analysing the five key forces, companies can develop
strategies to gain a competitive advantage and improve their profitability. You are required
to draw Michael Porter's five forces model.
(5)
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Question 4
[24 Marks]
Study the Balance sheet of Hakahana Dealers and answer the questions below:
Hakahana Dealers
Statement of Financial Position as at 30 April 2023
ASSETS
Current Assets
LIABILITIES
Current liabilities
Cash
Accounts receivable
Inventory
Prepaid expenses
22,225
42,200
98,200
5,340
Accounts payable
Wages
Payroll taxes payable
Short-term bank
18,250
21,900
3,525
5,700
TOTAL CURRENT ASSETS
_long-Term Assets
167,965
TOTAL CURRENT LIABILITIES
long-term liabilities
49,375
Vehicles
68,500
Furniture and fixtures 21,450
Equipment
33,000
Buildings & Land
402,500
Debentures
85,200
Mortgage Loan
120,600
TOTAL LONG-TERM LIABILITIES 205,800
TOTAL LONG-TERM ASSETS 525.450
TOTAL LIABILITIES
255,175
TOTAL ASSETS
Owner's Equity 438,240
693.415 TOTAL LIABILITIES& OWNER's EQUITY693.415
4.1 Calculate the following ratios:
(a) Liquidity ratios
(6)
(b) Solvency ratios
(6)
(Show all your workings in order to get full marks)
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4.2. Use the information below and answer the question that follows:
Selling price
= N$170.00
Lease and rent payments = N$1300 000.00
Telephone expense
= N$40.00
Salaries
= N$ 100 000.00
Water and Electricity
= N$30.00
Calculate the break-even point in units.
(7)
Show all workings/ (formula) to obtain full marks.
4.3 Assume you need to have exactly N$40,000 saved 10 years from now. How much should
you deposit today in an account that pays 6% interest, so that you reach your goal of
$40,000 if the investment is compounded annually?
(5)
END OF QUESTION PAPER
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